California's Cottage Food Operations Law — originally the California Homemade Food Act (AB 1616, 2012) — allows residents to prepare and sell certain low-risk foods from their home kitchens without commercial-kitchen inspection. Operators must register (Class A) or obtain a permit (Class B) with their county environmental health department, complete an approved food handler training within 3 months, and label products with specific state-required information. Annual gross revenue is capped at $150,000 under AB 1144 (2021). Only foods on the state's approved list may be sold — generally shelf-stable baked goods, jams, dry mixes, granola, roasted nuts, and honey. Foods requiring refrigeration or time-temperature control are prohibited.
| Governing law | California Homemade Food Act — Cal. Health & Safety Code § 113758 et seq. |
|---|---|
| Two classes | Class A (direct sales only) & Class B (direct + indirect through third-party retail) |
| Revenue cap | $150,000 gross annually (AB 1144, 2021) |
| Allowed foods | Only foods on state-approved list (baked goods without dairy/cream fillings, jams, dry mixes, honey, roasted nuts, etc.) |
| Prohibited | Dairy, meat, seafood, hot foods, canned low-acid foods, anything requiring refrigeration |
| Class A | Register with county env health; no inspection required |
| Class B | Permit with county env health; annual inspection required |
| Food handler card | Required within 3 months of registration/permit |
| Labeling | Producer name, address, product name, ingredients, allergens, "Made in a home kitchen" disclaimer, PIN |
| Sales tax | Regular California sales tax applies (some baked goods exempt) |
The California Cottage Food Operations Law
California legalized home-based food production for public sale in 2012 with AB 1616, the California Homemade Food Act. The law is codified at Cal. Health & Safety Code § 113758 et seq. and creates a specific regulatory category — the Cottage Food Operation (CFO) — for small home-kitchen food producers.
Cottage food operations sit between hobby-scale (giving food away or bake sales) and full commercial food production (which requires a commercial kitchen permit and Health Department inspection). CFOs let entrepreneurs test food business ideas with much lower regulatory overhead and startup cost.
Class A vs Class B
Two classes with different rules:
| Class A | Class B | |
|---|---|---|
| Sales channel | Direct-to-consumer only | Direct + indirect (through third-party retail) |
| Where you can sell | Farmers markets, own store, community events, direct pickup/delivery | All Class A channels + restaurants, retail stores, third parties |
| Registration process | Register with county env health (self-certification) | Full permit application with county env health |
| Home kitchen inspection | Not required | Annual inspection required |
| Fees | Modest registration fee (~$25–$150 depending on county) | Higher permit fee + annual inspection fee |
Most new cottage food operators start as Class A because of the lower cost and no-inspection process. Upgrading to Class B later requires a separate permit application.
$150,000 gross revenue limit
Cottage food operators are limited to $150,000 in gross annual sales. This limit was increased from $50,000 by AB 1144 (2021), which reflected the growth of the cottage food industry since 2012.
Operators must monitor their sales; exceeding $150,000 in a year requires transitioning to a full food-manufacturing license and a commercial kitchen. Sales are tracked on a calendar-year basis regardless of when the operator registered.
Allowed foods (approved list)
Only foods on the state's approved list may be produced under a CFO. The California Department of Public Health (CDPH) maintains and periodically updates the list. Broadly, the allowed categories are:
- Baked goods without dairy or cream fillings (breads, cookies, muffins, cakes, brownies, biscotti).
- Jams, jellies, preserves made with high-acid fruits.
- Fruit butters (apple butter, etc.) — high-acid.
- Dried fruits and vegetables.
- Dry cereal and granola.
- Dry mixes (baking mixes, herb mixes, spice blends).
- Roasted coffee beans and dried tea leaves.
- Nuts and nut butters (roasted).
- Popcorn and popcorn balls.
- Candy (fudge, brittle, hard candy).
- Chocolate-covered nonperishable foods (chocolate-covered pretzels, nuts, dried fruit — no fresh fruit).
- Honey.
- Vinegars and mustards (in some categories).
Check the current CDPH list before starting — categories evolve and specific formulations can be excluded even within an approved category.
Prohibited foods
Any food requiring time-temperature control for safety (TCS) is prohibited under the cottage food law:
- Dairy products (milk, cheese, butter, ice cream — including as fillings or icings).
- Meat, poultry, seafood, and products containing them.
- Cream-filled or custard-filled baked goods.
- Fresh salsa, guacamole, hummus.
- Low-acid canned foods (canned vegetables, meat, most soups).
- Hot foods and prepared meals.
- Any food requiring refrigeration for safety.
These foods require a fully licensed commercial kitchen and inspection under a different Cal. Health & Safety Code regime.
Registration & county permit
Class A registration
- Contact your county environmental health department.
- Complete the registration form (varies by county — often just a one-page self-certification).
- Pay the registration fee (typically $25–$150).
- Complete an approved food handler training course within 3 months.
No inspection is required. The registration is renewed annually.
Class B permit
- Contact your county environmental health department.
- Complete the permit application, submit floor plan of your kitchen.
- Schedule an initial inspection.
- Pass inspection and pay permit fee.
- Complete food handler training.
Class B operators are subject to annual inspection and can be inspected at any time in response to a complaint.
Labeling requirements
Every cottage food product sold must be labeled with:
- The name of the cottage food operation.
- The address of the operation (city, state, ZIP — street address not required).
- The name of the product (e.g., "Chocolate Chip Cookies").
- The ingredients in descending order by weight.
- Common allergens (milk, eggs, wheat, soy, tree nuts, peanuts, fish, shellfish, sesame).
- Net quantity (weight or volume).
- The statement: "Made in a Home Kitchen" (or "Made in a Cottage Food Operation").
- The registration or permit number issued by the county.
Labels must be in English and in at least 8-point type. Local counties may require additional information.
Food handler training
Cottage food operators must complete an approved food handler training course within 3 months of registration or permit issuance, and renew every 3 years. Approved courses include the ANSI-accredited programs (StateFoodSafety, ServSafe, Learn2Serve, and others) and typically cost $10–$25 with online completion in about 1–2 hours.
Where you can sell
Class A operators can sell:
- Farmers markets.
- Community-supported agriculture (CSA) programs.
- Their own home or retail location.
- Public events (fairs, festivals) with appropriate temporary event permits.
- Direct pickup or delivery to consumers.
Class B operators can sell everywhere Class A can, plus:
- Restaurants and cafes (as an ingredient supplier or as retail products).
- Retail stores (grocery, specialty).
- Through third-party retail partnerships.
Online sales are permitted for both classes but the sale must involve direct delivery or pickup — you cannot ship perishable products by common carrier without additional food safety permits.
Local zoning & HOA restrictions
Cal. Health & Safety Code § 113758 preempts local zoning ordinances that would prohibit CFOs, but local governments retain authority over:
- Reasonable local business license fees.
- Parking, signage, and traffic (for on-site pickup).
- Nuisance ordinances (noise, odors — for large-scale operations).
HOAs and rental agreements may restrict business operations from residential units — the state law does not preempt private CC&Rs or leases. Verify your CC&Rs and, if renting, get your landlord's consent before starting a CFO.
State agency contact
California Department of Public Health (Food Safety) + County Environmental Health
Registration and inspection are handled by county env health; state CDPH oversees
Compared to neighboring states
Related California laws
Related comparisons
Related guides
Recent changes
- January 1, 2022AB 1144 raised the annual gross revenue limit from $50,000 to $150,000, greatly expanding what home operators can build.
- January 1, 2019AB 626 created a separate "Microenterprise Home Kitchen Operation" (MEHKO) category for home-prepared meals (distinct from cottage food) in participating counties.
- January 1, 2013AB 1616 (California Homemade Food Act) took effect, creating the first legal framework for home-based food sales in California.
Need advice on your specific California situation?
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Sources
Primary sources
- Cal. Health & Safety Code § 113758 et seq.. The Cottage Food Operations Law statute. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC§ionNum=113758
- AB 1616 (2012) — California Homemade Food Act. The original enabling legislation. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120AB1616
- AB 1144 (2021) — Revenue limit increase. Raised the annual cap to $150,000. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1144
- CDPH Cottage Food Operations Page. The state agency's guidance page. https://www.cdph.ca.gov/Programs/CEH/DFDCS/Pages/FDBPrograms/FoodSafetyProgram/CottageFoodOperations.aspx